asked the Minister for Industry and Commerce the steps he is taking to persuade car manufacturers who sell their vehicles in Ireland to produce parts by manufacturers in Ireland.
Ceisteanna—Questions. Oral Answers. - Car Parts.
8.
(Limerick East): Substantial efforts continue to be made to persuade car manufacturers selling their vehicles in Ireland to manufacture components in this country and also to increase their purchase of components made here. To date, three car manufacturers or their distributors have established manufacturing plants in Ireland employing in excess of 1,000.
The Industrial Development Authority are actively encouraging other car manufacturers to set up manufacturing facilities here and maintain regular contact with these companies as part of their ongoing activities.
Córas Tráchtála are also active in the automotive sector and have implemented a specific export-oriented programme, including attendance at automotive trade fairs and presentations of Ireland's supply capabilities to automotive manufacturers.
Does the Minister agree that progress made on this issue has been unsatisfactory having regard to the enormous value and volume of car imports from within and outside the EC? Can stronger pressures be brought to bear, as opposed to invitations, to induce massive exporters of Japanese cars at least to have some of the parts manufactured in this country to replace the major car assembly employment which was provided before we joined the EC?
(Limerick East) There has been a perception that employment in the manufacture of auto components here has not been great. That is not correct. There are more than 7,000 people now employed in 100 firms in the country. More than 50 of the firms, mainly German and American, are supplying original equipment manufacturers, and that accounts for more than 80 per cent of the Irish employment. As well, exports are currently running at £250 million per annum. This has been increasing steadily since 1978. We are talking about 7,000 jobs, 100 firms, many of whom are supplying the home market, and £250 million worth of exports. That is very significant. The second part of the question suggests we should try to get involved in counter-trade pressure. We, more than any other country, depend on free trade in Europe and we will not go into barter or counter-trade or anything like that. However, we will promote the auto components sector very actively, but not on the basis of counter-trade with people who are exporting motor cars into Ireland.
I would ask the Minister for a comment on the Japanese car exporters whose products constitute a major portion of our imports. The major Japanese car exporters are providing employment in Ireland by the manufacture of components here, but are there negotiations or discussions under way with any of these firms that might induce them to participate in providing more employment here, having regard to the enormous value of our imports of Japanese cars?
(Limerick East): German and American companies are mainly involved in the manufacture of auto components here, but there are significant sales to Japan. One motor vendor here, Toyota, are involved in technological transfer with some companies, not in the auto components sector, but the goodwill that has been generated by the activity of selling Toyota cars here has resulted in a very significant technological transfer by the Japanese company involved, in the formulation of plastic pallets. It is very advanced and very technically desirable. The IDA are now concentrating more on Japan than they were previously. although they never neglected Japan. The move in Japan now is to set up in Europe to a degree not envisaged by them a few years ago and we hope there will be further results from that, particularly in regard to exports to Japan. We hope we can manufacture components for some Japenese cars here, but we are particularly interested in technological transfers from Japanese companies exporting to Ireland. I repeat that the goodwill generated by the sales of cars here can provide the stimulus for that activity as it has done in the past.
I put it to the Minister that companies such as Ford are much greater offenders than the Japanese. Has any pressure been put on that company to set up component manufacturing facilities in Ireland in view of the fact that they have withdrawn from assembly here, having replaced it with a slick manufacturing effort to try to put across their patriotism. They have got away scot-free to date from providing employment to replace that which was lost following their withdrawal from assembly.
(Limerick East): The attempts of the IDA and Government Ministers to opt the Ford Motor Company to manufacture auto components here is well documented. There is much information about it on the record of the House.
My colleague from the west has stolen some of my thunder. However, I am glad to realise that people throughout the country are concerned with the Ford (Ireland) Company that was. Are there any ongoing discussions with Ford (Ireland) or Ford (America) for the manufacture of components in Ireland following the closing down of the car assembly activities? Can the Minister comment on the famous statement of his colleagues at the time saying that Ford would not be allowed to walk away from Cork? That was in 1984. They walked and are still walking and I should like to know from the Minister if there are any ongoing discussions with Ford to stop that walking and to get them to walk in the other direction?
(Limerick East): The IDA recognise that the auto component industry is very significant for Irish industry. As I have said, they have been successful to the tune of 7,000 jobs. All major car manufacturers in Europe, the US and Japan are targets of this IDA policy, and that includes Ford.
I asked the Minister specifically if there are ongoing discussions by him or his Department with the Ford Motor Company. He should not try to sidetrack that direct question by trotting out statistics that have been read twice already.
(Limerick East): The IDA are the agency in this State involved in the setting up of manufacturing industry and we never reveal in advance arrangements for ongoing discussions which are taking place——
Are they?
(Limerick East): I should like to say, though, that the claims of friendship between Colonel Gaddafi and the Leader of the Opposition will not help to attract American industry to Ireland.